Gen Z getting serious about finances

Gen Z is beginning to make its mark on the world, and they are proving to be the most serious generation when it comes to finances.

That’s the word from Corebridge Financial’s 2025 Financial Capability Survey, which showed 78% of Gen Zers said they already have become serious about their financial future.

More than 1 in 10 Gen Zers (11%) said they spend 10-15 hours per month on financial planning, compared to 8% of baby boomers, 7% of millennials and 5% of Generation X.

Gen Zers cite motivations

Gen Zers said they had several factors that motivated them to become serious about their finances. The biggest motivation was earning a paycheck, which was cited by 35% of Gen Zers. Other motivators included financial aspirations such as paying for a dream vacation or a wedding (32%), nagging financial anxiety (26%) and planning for retirement (22%).

Terri Fiedler, president of retirement services at Corebridge Financial, told InsuranceNewsNet that one of the biggest takeaways from the survey is how many Gen Zers are getting serious about finances at a young age, compared with those of older generations.

“One thing that surprised me is that 78% of the Gen Z adults are already getting serious about financial planning and retirement. The oldest of this group is 28 years old, and if you contrast that with baby boomers, 41% of baby boomers said they didn’t get serious about retirement until after the age of 40. So I think it’s I think it’s encouraging that Gen Z seems to be getting more serious about financial and retirement planning at an earlier age than previous generations.”

Fiedler had a few theories about Gen Z’s interest in finances. Gen Zers have lived through some disruptive geopolitical and market events. In addition, this generation of young adults may have some doubts about Social Security being there when they are old enough to claim it.

Gen Zers still need professional advice

But the availability of information via social media also enters into play, she said. Gen Zers are comfortable going to platforms such as YouTube to get their financial education and young adults find it easy to use artificial intelligence to get answers to their questions.

But despite the use of online tools, Gen Zers aren’t ready to toss financial advisors to the curb. The survey showed that 35% of this age group turns to financial professionals to strengthen their financial planning capabilities, and 33% attend financial classes.

Advisor role needed

Fiedler said the survey results show there is still a role for advisors to play in helping young adults build a firm financial foundation.

“From a financial advisor’s perspective, there are two things here,” she said. “One is that if a financial advisor has a relationship with the parents of I Gen Zer, I think it would behoove that financial advisor to build relationships with the Gen Zer. You build relationships with the children and as a family, because if you don’t, those children will go and find their own advisor.”

In addition, Gen Z will be the recipient of a wealth transfer from older generations, and they will need the help of a professional to manage that wealth.

The secret to connecting with Gen Zers, Fiedler said, is to balance their short-term needs with their long-term goals.

“It’s about being able to reach them in a way that they can integrate retirement into their life goals,” she said. “So ask them, ‘What does that look like?’ ‘What are your long-term aspirations?’ ‘Do you see yourself having the freedom to travel or pursue your hobbies?’ ‘What experiences do you want in life?’

“Financial professionals can play a key role in helping Gen Zers bridge their knowledge gaps and strengthen their financial capabilities that will help them take the actions they need to accomplish their short-term and long-term goals.”

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